Introduction
India’s leather, leather products, and footwear industry is a significant contributor to the country’s economy, supported by strong manufacturing capabilities and a well-established value chain. The sector has developed into a major export-oriented industry, with products such as footwear, leather goods, and garments witnessing steady demand in global markets, thereby contributing to India’s foreign exchange earnings and overall economic growth.
The leather industry has a significant impact on the Indian economy. It is among the top ten foreign exchange earners in the country. Indian cattle & buffalo population accounts for 20% and the goat & sheep population of the country accounts for 11% of the world’s total. This places it in a dominant position in terms of access to affluent raw materials.
India’s product-wise share of total exports FY26
Source: Council for Leather Exports
With the leather industry being among the oldest trade in the country, India has strong skilled manpower and innovative technology. The country has a strong and eco-sustainable tanning base and modern manufacturing units. It also has strong support from the leather, chemical and auxiliary industries. The industry employs about 4.42 million people in the country. It is a prominent source of employment in the rural parts of India with women employed at about 30% in the sector.
India has four main leather sectors: Tanning, Footwear, Leather Garments and Leather garments and Accessories. The country accounts for 13% of the world’s total leather production. It is also the second-largest producer and consumer of leather footwear.
Major footwear and leather products producing states in India are Tamil Nadu, West Bengal, Uttar Pradesh, Maharashtra, Punjab, Karnataka, Madhya Pradesh, Haryana, Kerala, Rajasthan, and Jammu & Kashmir.
Export Trend
India’s leather and leather product exports (US$ million)
Source: Council for Leather Exports, Business Today
India’s leather and footwear export basket in FY26 is dominated by leather footwear, which accounts for the largest share at around 41%, reflecting strong global demand and India’s manufacturing competitiveness in this segment. Leather goods follow with a significant ~26% share, indicating their importance as a key intermediate export category. Among other segments, finished leather contributes about 8%, while leather garments and footwear components each hold a mid-single-digit share (6 to 9%), highlighting steady but relatively smaller contributions. Saddlery & harness and non-leather footwear account for low single-digit shares (around 5%), suggesting niche but consistent export presence. Overall, the data indicate that India’s export performance in this sector is heavily concentrated in value-added footwear products, while other segments provide diversification and support to the broader leather industry export ecosystem.
Export Destinations
India’s leather and leather products exports in FY26 are moderately diversified, with the USA emerging as the largest export destination, accounting for 20.54% of total exports. Among European markets, Germany (10.97%), the UK (8.84%), Italy (6.22%), France (4.65%), and Spain (5.47%) collectively represent a significant share, highlighting strong demand from the region. The UAE (2.99%) and the Netherlands (6.11%) also contribute notably, while Hong Kong (0.97%) holds a relatively smaller share. A substantial 34.21% is categorized under Others, indicating a broad global presence across multiple smaller markets. Overall, the data reflects India’s strong positioning in key developed markets alongside a well-distributed export base across emerging and diversified destinations. India exports leather to more than 50 countries. USA, Germany, the UK, Italy, France, Spain, Netherlands, China, Belgium, UAE, Australia, Poland, Hong Kong, Denmark, Canada, Vietnam, and Portugal are among the top importers of leather and leather products from India.
India's country-wise share of leather and leather products exports in FY26
Source: Council for Leather Exports
The Top 15 countries together account for about 77.57% of India’s total leather & leather products export during April-March 2025-26 with export value of US$ 4750.11 Mn.
Government Initiatives
India’s leather and footwear sector continues to be an important export-oriented, labour-intensive industry, supported by targeted government initiatives to enhance competitiveness and growth. The government has introduced policy measures such as a Focus Product Scheme for footwear and leather to improve productivity, design capacity, and manufacturing capabilities, which is expected to generate large-scale employment and boost exports significantly. In addition, schemes like the Indian Footwear and Leather Development Programme (IFLDP) and employment-linked initiatives such as PMVBRY aim to support MSMEs, promote infrastructure development, encourage job creation, and strengthen production capacity. The sector’s export performance is also being enhanced through trade agreements and facilitation measures that improve market access, streamline standards, and support global value chain integration, thereby positioning India’s leather exports for sustained growth.
Indian Footwear and Leather Development Program (IFLDP)
The Union Budget 2026-27 introduced additional measures under the Import of Goods at Concessional Rate of Duty (IGCR) Scheme to boost the footwear and leather sector. The scheme has been extended to shoe upper exporters, a value-added segment that recorded exports of Rs. 1,877.24 crore (US$ 222 million) in 2024-25. The period for export under the IGCR Scheme has been extended from six months to one year from the date of import of inputs, while the scheme and related customs duty benefits for export-oriented inputs have been extended until March 31, 2028. These measures are expected to enhance export competitiveness, support value-added manufacturing and strengthen India’s position in global footwear and leather product markets.
The IFLDP scheme was launched to develop the infrastructure, increase production, facilitate investments, and generate employment in the leather industry of India. Under this scheme, US$ 220 million (Rs. 1,700 crore) has been allocated till 2026. Following are the six sub-schemes under IFLDP:
- Sustainable Technology and Environmental Protection (STEP) - The STEP initiative is aimed at sustainable and environment-friendly industrial and tanning activities which are particularly linked to environmental concerns. Considering these issues, zero liquid and wastewater discharge is made mandatory in some states. Assistance for the upgradation of Common Effluent Treatment Plants (CETPs) and vision document preparation is provided under the scheme.
- Integrated Development of Leather Sector (IDLS) - The main objective of this scheme is to encourage entrepreneurs to diversify and set up new units leading to better productivity.
- Establishment of Institutional Facilities - The scheme aims to provide infrastructure upgradation of campuses of the Footwear Design and Development Institute (FDDI).
- Mega Leather Footwear and Accessories Cluster Development (MLFACD) - The scheme was launched to assist entrepreneurs by providing modern infrastructure, technology, training and skill development and human resource development inputs.
- Brand Promotion of Indian Brands in Leather - The scheme aims to provide Indian footwear and leather manufacturers international branding support to provide better product visibility.
- Footwear Sector and Development of Design Studios - This scheme provides design support, technical assistance and opportunities for employment and business.
Governing Body
Council for Leather Exports (CLE)
Formed in 1984, the CLE is the largest and apex body of 2,868 members for trade promotion of the leather and leather industry of India. The objectives of the council are to develop and strengthen the leather industry, undertake promotion, and market development activities, assist importers, provide guidance and act as a liaison between the government and industry. It caters to the needs of leather exporters and serves as a bridge between Indian leather exporters and buyers all over the world. CLE has been formed to provide a one-stop source for international investors to not only access all the information but also avail the required guidance to set up a successful venture in the Indian marketplace.
RELATED SITES
Executive Director
3rd Floor, CMDA Tower II,
Gandhi Irwin Bridge Road
Egmore, Chennai - 600008,
Tamil Nadu
India
Tel.:+91-44-28594367-71 (5 line)
Fax: +91-44-28594363/ 64
Email: cle@cleindia.com
Website: www.leatherindia.org
Partners
